New Connecticut law lets state attorney general target a public employee's pension

McClatchy-Tribune

Published
12:00 am EST, Friday, February 3, 2012

STAMFORD -- Former Stamford accountant James Santorella is only the second public employee in Connecticut to have his retirement payments targeted by the attorney general since the state's pension revocation statute took effect in October 2008.

Former Hartford Mayor Eddie Perez was the first public employee to see his pension threatened by the relatively new law, which was partially inspired by the conviction of former Gov. John G. Rowland on corruption charges. Rowland, the only Connecticut governor to serve time in prison, is to begin collecting an annual $50,000 pension this summer.

Perez, a Democrat, was sentenced in June 2010 to three years in prison for allegedly accepting bribes and engaging in extortion. He resigned and is appealing his conviction.

Perez could potentially collect a $2,300 monthly pension when he turns 60 in 2017. But former state Attorney General Richard Blumenthal, now a U.S. Senator, initiated pension revocation proceedings against Perez in September 2010, said Susan Kinsman, spokeswoman for current state Attorney General George Jepsen. The case is pending.

Last month, Jepsen's office filed a Superior Court lawsuit seeking to stop or reduce Santorella's pension. The former longtime Stamford accountant pleaded guilty in September to embezzling $21,000 in taxpayer funds and is now on probation. He has been receiving a $5,297 monthly pension from the city since late December, said Interim Director of Administration Pete Privitera.

Stephan Seeger, Santorella's attorney, said they will fight against attempts to interfere with his client's retirement payments.

"He made a mistake and he's paid dearly for it," Seeger said last week. "And with this new lawsuit the whole issue simply gets raised again."

Connecticut general statutes say the attorney general "shall" seek to end state or municipal employees' pensions payments if they are convicted or plead guilty to a "crime related to state or municipal office." Kinsman said the crime must involve public funds; so far, only Perez and Santorella have qualified for possible pension revocation since October 2008.

"The statute applies when there is a conviction or the municipal employee pleads guilty to a felony offense that involves theft or misuse of public funds," Kinsman said. "There may be convictions in other circumstances where the statute would not apply."

Perez and Santorella are the first public employees ensnared in the new pension revocation statute, but they might not be the last. In January, eight state workers were either fired or retired after being investigated by the state Department of Social Services for possible fraud related to the $12.4 million Disaster Supplemental Nutrition Assistance Program, which provided federal monetary assistance for individual damage and expenses incurred because of Tropical Storm Irene.

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